Rewe Plans To Acquire Tegut Stores

Major German retailers Edeka and Rewe are planning to take over many branches of the supermarket chain Tegut. Tegut, which has been based in Fulda for decades, is a regional provider in Hessen. The Federal Cartel Office must review the acquisition to determine if it significantly hinders effective competition in the food market. The move reduces the number of providers in an already competitive market. Edeka intends to acquire approximately 200 Tegut store locations. Rewe has signed a contract to take over up to 40 additional branches. The Bundeskartellamt is currently reviewing the acquisitions to determine how many locations each company may assume. Consumers have expressed fears regarding potential price increases following the acquisitions. An independent competition expert group noted that Edeka, Rewe, Aldi, and the Schwarz Group (Lidl and Kaufland) now control approximately 85 percent of the German food retail market. Producers and farmers face uncertainty regarding whether new owners will honor existing contracts. This concentration of market power is cited as a reason for consumer price stability.